Commercial real estate can be a great investment to make. Whether you’re intending to rent the property out or flip and resell, low value properties can still be profitable. When you plan and keep track of your costs, it’s easy to see how investing in low value real estate can bring a great return.

With a low purchase price and the ability to know about any renovation cost ahead of time, you can easily assess your starting costs against your hoped for profit margins. This will allow you to plan out ahead of time what your probable return will be. When you know what you can spend and have the ability to view the property ahead of time, you can determine what repairs will need to be made. This will allow you to know what sort or offer you can make on the property in the beginning and still reach your hopes for return.
Renting commercial real estate can be a great investment over the long haul. After your initial costs and renovations you can raise the the rent to reflect the updated property’s value. This means that over a series of months, the cost of any repairs and renovations can easily be earned back. The concept is similar when flipping a property. Updated appliances and decor, along with other renovations, can be reflected directly in the rise in property value. So if you purchased at a relatively low price with a renovation budget already in mind, the renovated property can then be sold at a profit.
It’s a great idea to do your research when purchasing a low value property so that you can get accurate estimates when calculating your investment return. Know the neighborhood and the history of the property when you can. It’s also a good idea to know the average costs of the most common repairs, and which renovations will add value to the property. This may be a good step to consult with a contractor on. Knowing these factors will give you an advantage when calculating the costs and returns on your investment.

Another thing to keep in mind when investing in real estate, is to make use of all the possible marketing avenues when searching out your leads. Whether it’s making offers on low value property after low value property, or placing an ad in the phone book for your business, the more opportunities you take advantage of the more opportunities for investment in commercial real estate you’ll find.